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Nucor (NUE) Expects Record Q3 Earnings on Strong Demand, Prices

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Nucor Corporation NUE announced guidance for third-quarter 2021. It expects the quarter’s earnings between $7.30 and $7.40 per share. The company is gearing up to report the highest quarterly earnings ever in its history, surpassing the prior record of earnings per share (EPS) of $5.04 in second-quarter 2021.

This will also mark a significant improvement from the EPS of 63 cents reported in the third quarter of 2020.

This upbeat backlog is backed by strong demand across most of Nucor’s end-markets and higher average selling prices, which is driving strong profitability in all of the three segments. The steel mills segment is expected to witness an improvement in earnings in the third quarter compared with second-quarter levels.

The company expects the steel products segment to generate significantly higher earnings in the third quarter, due to margin expansion led by higher average selling prices. The raw materials segment's earnings in the third quarter are projected to be comparable to the second quarter of 2021, excluding an impairment charge recorded in the second quarter of 2021.

Nucor’s internal business units' forecast suggests that its fourth-quarter 2021 results are likely to reflect the momentum of outstanding performance seen so far this year.

The company also stated that during the third quarter, Nucor repurchased 6.7 million shares at an average price of $105.58 per share. This brings the year-to-date total to18.8 million shares at an average price of $86.15 per share. So far this year, Nucor has returned roughly $2 billion to shareholders in the form of share repurchases and dividend payments.

Shares of Nucor have gained 123.3% in the past year compared with 111.2% surge of the industry.

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Zacks Investment Research


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Zacks Rank & Other Key Picks

Nucor currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Reliance Steel & Aluminum Co. RS, The Chemours Company CC and Olin Corporation OLN.

Reliance Steel has a projected earnings growth rate of around 133.6% for the current year. The company’s shares have soared 37.3% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected earnings growth rate of around 86.4% for the current year. The company’s shares have gained 41.8% in the past year. It currently carries a Zacks Rank #2 (Buy).

Olin has an expected earnings growth rate of around 639.3% for the current fiscal. The company’s shares have surged 285.6% in the past year. It currently carries a Zacks Rank #2.


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Nucor Corporation (NUE) : Free Stock Analysis Report

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Olin Corporation (OLN) : Free Stock Analysis Report

The Chemours Company (CC) : Free Stock Analysis Report

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